Serba Dinamik Annual Report 2016

2016 Annual Report 141 NOTES TO THE FINANCIAL STATEMENTS (Cont’d) 15. EMPLOYMENT BENEFITS - GROUP In accordance with Indonesian Labor Law No.13/2003, the Group provides post employment benefits to the eligible employees of an indirect subsidiary upon terminating their employment or upon attaining retirement age. The benefits payable are determined based on employees length of services and compensation at termination or retirement. The Group operates the post employment benefits plan for eligible employees of an indirect subsidiary who are Indonesians with age above 20 years and continuous service of at least a year from date of hire. The benefits payable on retirement are based on length of service, input factor and base pay. The retirement age is 55 for employees of the subsidiary. The post employment benefit plan exposes the Group to actuarial risks such as longevity risk, financial risks such as change in discount rates and demographic risk such as turnover rate not being borne out. The following table shows a reconciliation from the opening balance to the closing balance for defined benefit liability and its components. RM Balance at 25 May 2016 – Acquisition through subsidiaries 396,672 Included in profit or loss (Note 18) Current service cost 95,128 Balance at 31 December 2016 491,800 Actuarial assumptions Principal actuarial assumptions at the end of the reporting date 2016 Average years of service of employees 2.45 years Annual discount rate 9% p.a. Salary increment rate 7% p.a. Normal pension rate 55 years Mortality rate Table Mortality Indonesia (TMI) Sensitivity analysis There is no sensitivity analysis performed as any change will be insignificant to the Group.